All categories of home buyers should be granted stamp duty exemption till the end of 2025 for property priced between RM500,001 and RM1 million to stimulate the housing market in the current challenging environment.
This is something that property developers and house buyers are hoping for in the Budget 2024.
The Finance Ministry (MOF) recently announced that first-time home buyers will continue to benefit from a 100 per cent stamp duty exemption for purchases up to RM500,000 through the Malaysian Home Ownership Initiative (i-Miliki), as outlined in Budget 2023.
The i-Miliki project would also provide a 75 per cent stamp duty exemption for first-time home buyers for houses priced between RM500,000 and RM1 million.
This stamp duty exemption applies to sale and purchase agreements entered between June 1, 2022, and December 31, 2023.
According to the MOF, the exemption is part of the Home Ownership Programme (HOPE), which exempts first-time buyers from paying stamp duty on transfer documents and loan agreements.
A senior real estate advisor said there are potential home buyers who are considering acquiring a home this year, either to upgrade and relocate to a better location or simply to start a family, and they are looking for incentives to assist them in making a decision.
He said that the government's stamp duty exemption of 100 per cent for first-time home buyers has boosted property ownership, but only for properties priced below RM500,000.
"Stamp duty is exempt at 100 per cent for properties priced below RM500,000 and 75 per cent for properties priced between RM500,000 and RM1 million. This, however, is only applicable to first-time house buyers. We have interested parties who are thinking about purchasing their second or third home, but there are no attractive incentives to assist them in making a decision.
"They are looking for a home in a prime location, close to schools, malls, public transportation, and major highways. It's difficult to find a home in this neighbourhood for less than RM500,000.
"The majority of prime-location properties are selling for more than RM700,000 to greater than RM1 million. If stamp duty exemption can be extended to all home buyers for properties costing close to RM1 million, we will see more people opt for higher-end residences," he told NST Property.
He believes that better incentives for home purchasers will help reduce property overhang.
In the first quarter of 2023, the residential property sector registered 153,923 transactions worth RM20.9 billion, a 6.6 per cent decrease in volume and a 9.1 per cent decrease in value year on year.
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) issued a statement urging the government to extend the stamp duty exemption period for property priced between RM500,000 and RM1 million until the end of 2025 from the end of 2023, when tabling Budget 2024.
ACCCIM said, this will standardise the stamp duty exemption period for houses worth RM500,000 and below, which will last until the end of 2025, and will boost sales of new properties in that price range in the face of increased lending rates.
In addition, the association hoped that banks will continue to offer attractive home mortgage packages to first-time home buyers in order to promote the Home Ownership Programme.
ACCCIM also hopes that all property exchanges based on love and affection between spouses, parents and children, grandparents, and grandkids will be exempt from stamp duty up to RM1 million in value.
It stated that this move will promote residential property development, which speaks well for other supporting industries.
According to the report, the stamp duty exemption will save homebuyers money.
ACCCIM estimated that the improvements will result in savings of RM11,500 for a RM500,000 home and RM21,750 for a RM1 million property.